A. The state board of education shall establish an academic contests fund consisting of monies appropriated by the legislature or received by the state board as provided in subsection D of this section.

B. The state board of education shall prescribe rules for the distribution of fund monies to school districts and charter schools for the purpose of sending pupils who are state level winners of academic contests and their chaperons to the national levels of these contests so that the pupils may represent this state.

C. The criteria on which the state board shall base its rules for the distribution of fund monies shall include at least the following:

1. The contests must be academic in nature and motivate pupils to be creative and to demonstrate excellence.

2. Contests must be sponsored by a recognized national organization.

3. Contests must be open to all pupils, regardless of race, creed, gender or national origin, except that a contest may separate pupils by age or grade level.

4. The opportunity to compete at the national level must be the result of successfully competing at the local or state level, or both, of that contest.

D. The state board of education may accept gifts or grants of monies for deposit in the academic contests fund as provided in this section.

E. A school district which receives monies as provided in this section shall include the monies in the special projects section of the budget as provided in section 15-903, subsection F.